Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — Q1 2023 Earnings Presentation
18 slides from Caledonia Mining's earnings presentation, 2023
Slide 1: Q1 Results Presentation 2023
Q1 Results Presentation 2023
Slide 2: Disclaimer and forward looking statements
Disclaimer and forward looking statements THIS PRESENTATION DOES NOT CONSTITUTE, OR FORM PART OF, ANY OFFER TO SELL OR ISSUE OR ANY SOLICITATION OF ANY OFFER TO PURCHASE OR SUBSCRIBE FOR, ANY SHARES IN CALEDONIA MINING CORPORATION PLC (“CALEDONIA”), NOR SHALL IT (OR ANY PART OF IT) OR THE FACT OF IT
Slide 3: Presentation Team
Presentation Team Mark Learmonth, Victor Gapare, Chester Goodburn, Chief Dana Roets B.Sc., Chief Operating Chief Executive Officer and Executive Director Financial Officer Officer and Director Director Maurice Mason, Vice President Camilla Horsfall, Vice President NYSE/AIM/VFEX: CMCL 3 Corporate Dev
Slide 4: Results
Results Summary 3 months ended March 31 2022 2023 Change (%) Production (ounces) 18,515 16,141 -12.8% Average gold price ($ per ounce)1 1,848 1,863 0.8% Revenue ($’m) 35,072 29,435 -16.1% Gross Profit ($’m) 2 16,892 5,850 -65.4% Net profit (loss) attributable to shareholders ($’m)1 5,940 (5,030) -18
Slide 5: Overview
Overview • This is the first quarter reflecting Caledonia’s ownership of Bilboes. In any event, this would be a short-term negative effect on financial performance due to the high start-up costs and low scheduled production at Bilboes oxides and transaction costs. • Production at Blanket was below t
Slide 6: Review of Operations - Blanket
Review of Operations - Blanket Tonnes Milled & Grade (2012 – Q1 2023) 250,000 5.5 200,000 Tonnes Milled (t) Head grade (g/t) 4.5 150,000 3.5 Q1 2023 grade, although lower than 2.5 100,000 previous quarters, was largely as planned (3.11g/t cf 3.22g/t) 1.5 50,000 Q4 Q2 Q1 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 7: Review of Operations – Bilboes Oxides
Review of Operations – Bilboes Oxides • Bilboes Oxide project was intended as a small scale, short-term operation • Generate cashflows to cover the cost of the existing Bilboes operations before work commences on the larger sulphide project • Pre-stripping for the larger sulphide project A low-margi
Slide 8: Review of Results: Profit or loss
Review of Results Profit or loss Blanket Bilboes oxide Other1 Consolidated ($’m) Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Change 2022 2023 2022 2023 2022 2023 2022 2023 (%) Revenue 35.1 29.3 - 0.2 - - 35.1 29.4 -16.2% Lower revenues due to lower production. Royalty (1.8) (1.5) - - - - (1.8) (1.5) -16.7% Royalty rema
Slide 9: Review of Results: Production Costs
Review of Results Production Costs 3 months ended March 31 ($’m) 2022 2023 Change (%) Blanket 13.3 15.4 15.0% Wages and salaries1 5.5 6.3 14.5% Mandatory wage increases in Zimbabwe, increased headcount and Q4 2022 production bonuses Consumables1 5.1 5.8 13.7% Inflationary increases. 2.3 2.9 Higher t
Slide 10: Review of Results: Administrative expenses
Review of Results Administrative expenses ($’000's) 3 months ended March 31 2022 2023 Change (%) Investor relations 125 163 30.4% Minor increase in activity due to equity raises. Audit fee 68 69 1.5% $3.1m increase due to the Bilboes advisory fees on the successful completion of the Bilboes Advisory
Slide 11: Review of Results: Cost per ounce
Review of Results Cost per ounce • On-mine cost per ounce increased due to Bilboes oxides and electricity charges at Blanket. • AISC increased due to Bilboes acquisition advisory fees. 1. Source: section 10.1 of the MD&A published on May 15, 2023. NYSE/AIM/VFEX: CMCL 11
Slide 12: Review of Results: Taxation
Review of Results Taxation Q1 ($’000’s) Blanket South Africa UK Total Income tax 1 852 (44) - 1,808 Withholding tax - management fees - 41 - 41 - deemed dividend 85 - - 85 Deferred tax 1 192 76 - 1 268 CHZ dividends to GMS - - 300 300 Total Taxation charge 3 129 73 300 3 501 Cash tax paid 604 141 60
Slide 13: Review of Results: Cash Flow
Review of Results Cash Flow 3 months ended ($’m) March 31 Change 2022 2023 (%) Cash flow before working capital 13.5 0.1 -99.3% Inflow of $1.9m due to lower inventory; $6.7m Fidelity debtor (received in April) & $2m VAT Working capital (1.6) 0.6 137.5% receivable, Bilboes deferred shares payable $3.
Slide 14: Review of Results: Balance Sheet
Review of Results Balance Sheet ($’m) Dec 31, 2022 Mar 31, 2023 Increased investment in E&E assets due to the Bilboes sulphide Non-current assets 196.8 269.1 acquisition Reduction in inventory levels and prepayments from 2022 relating to Current assets (excl. cash) 31.7 31.9 the solar project. Incre
Slide 15: Review of Results: Cash
Review of Results Cash Mar 31, Jun 30, Sept 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Apr 30, ($’m) 2022 2022 2022 2022 2023 2023 2023 2023 2023 2023 Zimbabwe 2.2 3.2 2.1 8.1 5.8 8.9 0.9 (2.2) (9.7) (12.1) South Africa 1.7 3.2 1.7 0.6 1.9 0.9 0.9 0.7 1.1 2.4 UK/Jersey 9.1 10.4 9.2 7.5 6.7
Slide 16: Other Matters
Other Matters • Bilboes sulphides • Work commenced on Feasibility studies in April • The initial focus is on high-level studies for projects with differing production ramp-ups to identify the optimal capital allocation: minimise equity dilution; maximise growth; a prudent approach to debt funding •
Slide 17: Outlook
Outlook • Blanket: • 2023 production range of 75,000 to 80,000 ounces of gold • Blanket on-mine cost of $770-850 per ounce • Group all-in sustaining cost will depend inter alia on production and costs at the Bilboes oxide project - for which guidance has been withdrawn. Revised AISC excluding Bilboe
Slide 18: Contacts
Contacts Website: www.caledoniamining.com Twitter: @CaledoniaMining Investment Research Cenkos Securities: www.cenkos.com Liberum: www.liberum.com Share Codes: NYSE American / AIM / VFEX – CMCL Cantor Fitzgerald: www.cantor.com Standard Bank: www.standardbank.com Caledonia Mining VFEX Advisor: IH Gr